Unless you’ve been living under a rock, you likely know a thing or two about cryptocurrency by now. You understand that this is an alternative form of currency. And for some cryptocurrency “maximalist” this is the future of money! But can you buy anything valuable with cryptocurrency?
While there’s still a long way to go for mass adoption, many businesses now accept cryptocurrency as a form of payment. In fact, you can even buy digital works of art with cryptocurrency. Within the blockchain world, there are Non-Fungible Tokens or NFTs. This is a certification that a digital asset is unique and belongs to a specific individual or group.
Let’s look into what you need to know about NFTs and why they’re the latest craze among crypto investors:
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Any type of digital file can be considered a “digital asset.” However, NFTs are often used to certify artistic digital assets, these can include videos, audio, and even digital art. It’s the latter type of digital asset that has soared in popularity. Digital assets can get copied. But an NFT provides certification of which asset is the original. It also states who is the rightful owner of the original digital asset.
For example, anyone can replicate the image of Leonardo Da Vinci’s painting, The Mona Lisa. But we know that the original is at the Louvre Museum in Paris. If The Mona Lisa was an NFT, it would state that the original painting is the one in the Louvre Museum. It would also state that the Louvre Museum is the rightful owner of the original.
If you’re intrigued, you might want to read more on what to know about NFTs and how to buy them.
Why NFTs Are an Investment
So why are digital assets an investment? After all, they are easier to replicate! We can return to the argument regarding physical assets. The original painting of The Mona Lisa is always more valuable than any facsimile. If the Louvre Museum wished to sell it to a private individual, they’ll make a lot more than if someone else sold a facsimile of the painting.
As such, NFTs provide an opportunity for collectors in the virtual world. It allows digital investors to own a valuable asset. This asset can get displayed, shared, and sold.
For example, we can expect more digital art galleries where one can view digital art in the virtual world. The owner can charge a fee for other internet users to view the art. The owner can also sell their NFT for a profit at a later stage.
NFTs became part of our zeitgeist when we heard of an NFT that sold for $69 Million! The Wisconsin-based artist, Mike Winkelmann aka Beeple had been creating digital art for several years. For a period of 5,000 days, he created a piece of digital art without taking a break. These works of art were then melded into a collage called Everydays. Beeple decided to sell this digital art, as he had done with previous works.
Among digital artists, Beeple is the most prominent. As a result, the auction house Christie’s decided to auction off Everydays. The payment was made using the cryptocurrency Ethereum. The buyer had slightly over 40,000 ETH which is what he used to purchase the artwork. The dollar value was equivalent to $69 Million.
But who was this mysterious buyer who was willing to buy a digital artwork for such an extravagant amount?
It was revealed that the buyer was a digital investor who went by the pseudonym MetaKovan. He had previously bought some of Beeple’s works and was an expert in buying NFTs. Since the purchase was for such an exorbitant amount, there was much speculation on who MetaKovan was. MetaKovan was the alias of Indian investor and techie, Vignesh Sundaresan. He decided to reveal his identity because he wanted to inspire other Indians that they could also invest in digital art.
Sundaresan realized that cryptocurrency was the great equalizer for people living outside of The West and other developed nations. It made it easier for everyone to become wealthy. NFTs were the next step. He realized this was the new way for anyone to invest in valuable digital assets. He also realized that NFTs allowed different perspectives to get expressed through art.
Through NFTs artists from outside the developed world could express their point of view. In other words, they gave a voice to the voiceless.
This very human element to NFTs has helped catapult digital art ownership to the next level. MetaKovan’s story has inspired others to invest in NFTs. His viewpoint alone has been sufficient to make NFTs a valuable asset for investors.
How NFTs Benefit Artists
So how would NFTs benefit artists? Why would artists consider selling their artwork in the virtual world?
The major benefit of NFTs is that artists earn a commission every time the NFT gets sold. In the physical world, the artist only gets paid once when they initially sell their painting.
As we’ve learned from MetaKovan, digital art is accessible to more people all over the world. With NFTs you get to share your artwork with internet users from across the globe. You also open yourself up to a larger market of buyers. How many American artists have sold their works to Indian buyers?
It’s because of NFTs that the American Beeple was able to become a millionaire because of the Indian Metakovan!
While the current focus is on digital art, as an artist you have a variety of options with NFTs. You can create motion graphics, animation, feature films, voiceovers, etc. You have the flexibility to experiment with your art. You can choose to create different types of art and profit from your art. If you want to earn in crypto, this is one of the best ways to do it.
How NFTs Benefit Investors
As an investor, why should you consider investing in NFTs? It’s important to do your own research to decide whether you think this is a worthy investment. But there are many advantages to NFTs to consider. When MetaKovan bought Everydays for $69 Million, many people were shocked. Many will continue to think this was a waste of money.
But remember that this same type of skepticism got aimed at Bitcoin and other cryptocurrencies. Think about how much time you spend in the virtual world.
Many people already pay fees to view digital art. If you cannot visit the Louvre in Paris or Abu Dhabi, you’ll pay to see the art online. This will come with a virtual tour to learn more about the art. We already spend much time reading digital books, rather than lugging paperbacks around.
We might also see more demand to watch animated NFTs. Newer generations will enjoy watching motion graphics over live-action films. This gives you an opportunity to own digital assets that others want to engage with. A cryptocurrency user will be willing to spend crypto to look at a digital artwork or watch a motion graphic.
While the future is always uncertain, this could be a potential goldmine that can fatten your cryptocurrency wallet.
Apart from Beeple’s sale of Everydays, what are some of the other NFT milestones?
The following milestones will help you understand the popularity of NFTs so you can decide where you think this phenomenon is heading:
YouTube star Logan Paul sold an NFT of a few video clips from his videos. These videos can get seen for free on his channel. Nevertheless, he managed to sell them for $20,000. Twitter CEO Jack Dorsey also sold an NFT of his first tweet! This got sold for $2.5 Million.
A game called CryptoKitties has an NFT system that allows cryptocurrency users to buy and sell virtual kittens! This shows that an NFT can get used for almost any digital asset!
As for MetaKovan, he continues to buy NFTs and holds them within his company MetaPurse. He’s gained more popularity since revealing his identity. As such, the speculation for NFTs continues to soar with every interview he gives. His interviews also provide an insight into the future of cryptocurrency and the freedoms they bring. He’s discussed how NFTs will also get used for assets such as virtual land!
It’s possible that digital art may phase out. But NFTs seem like they’re here to stay. It’s clear that we’ve barely scratched the surface of what NFTs can do. But as we spend more time in the virtual world, NFTs might become as important as social media, emails, and websites.
Continue the Conversation
Whatever your views on NFTs, we encourage you to continue the conversation around them. It’s possible that they might be a fad. Or, like cryptocurrency, they might continue to soar in popularity. For creators and investors alike, NFTs will play an important role in digital assets.
Digital assets will continue to be a lucrative opportunity for creators and investors. As recent events have shown us, we can’t always depend on the physical world for our daily bread and butter. More of us will work and invest remotely. NFTs are a conversation you don’t want to miss out on.
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